The Statement of Retained Earnings for Redwood Systems Ltd

question 14

Multiple Choice

The statement of retained earnings for Redwood Systems Ltd. shows a retained earnings balance of $300 million on December 31. During the year, Redwood generated net income of $60 million and paid dividends of $20 million to its stockholders. What was the beginning balance of retained earnings at the start of this year?

• A)$300 million
• B)$260 million
• C)$380 million
• D)$340 million
• E)$220 million

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